Hi!
Need some advice. I plan to start a consulting firm along with a friend/partner. My partner has a DIN and I don't have one. Annual Billing is expected to be anywhere between 10 lacs - 30 lacs (could go higher depending on luck).
- What is the most beneficial legal structure - Partnership, LLP or Pvt Ltd Company. Not too worried about reserving the "brand name" at this stage.
- As the billing keeps coming in, we would like to withdraw money every month to meet our family expenses - in a partnership, can remuneration be paid to the partners throughout the year and finally reconciled such that it falls within the limits prescribed in Section 40b or does it have to be only paid lumpsome after the end of the FY (say in April 2019)
- In case the remuneration can be paid throughout the year, can such remuneration vary from month to month (depending on how business does or expense needs etc.)?
- The proportion of effort between the two of us is going to vary from project to project and can't be predicted in advance. In case of a partnership, will we need to create a new partnership deed everytime we get a new project or is there someway to either not write the proportion of profit sharing in the partnership deed or keep it fluid.
Thanks a ton for your advice, in advance!
CAclubindia
